Monday, 28 May 2007

Surrounded by Million-dollar Suburbs

Although it hasn't yet broken the million-dollar mark for average house prices, the area in which we have both our home and our investment property (coloured green in the diagram below (adapted from a recent SMH article) is surrounded by suburbs where the average house price is now over A$1m. This is quite reassuring as in Sydney it seems that the higher-priced suburbs have been the most resilient in the recent property downturn, and over time experience the greatest gains. Apparently while it is hard for the average worker in Sydney to afford a house with average prices approaching the half-million dollar mark, executives working for investment banks are awash with cash and snapping up any multi-million-dollar houses that come up for sale.

Enough Wealth


mOOm said...

This is a great resource I discovered yesterday when looking for house prices in Canberra where we might be moving:

Probably you are already aware of it. said...

I use a similar site to get median price data which I use to estimate my property valuations each month.

This site provides figures based on the past 6 months sales rather than the past 12 months, so my valuation estimates will be slightly more up to date using this data source. When I first started tracking the valuations this site provided monthly median and average price data, which was more "choppy" due to the smaller sample size, but was more up to date. Using the 6-mo average data will mean my valuations are about 3 months out of date - which should usually mean a small undervaluation in the generally rising Sydney property market.

I like the long term price trend graph on the site you quoted though ;)

StealthBucks said...

Wow, I use to live in Rushcutter's Bay and went to what was New South Wales Inst of Tech (Undergrad school). I paid $200 per month to rent a room with two local gals. I was there in the late to mid 80's. These numbers are amazing. I thought Sydney was pretty cheap to live in then. That's a lot of coin for a home.

I guess if I ever get back with my kids in tow, I'd better bring a bunch of cash. So much for my vision of a great and inexpensive place to live.